HURL To Go Public In FY27 As India Moves To Cut Fertiliser Import Dependence

The central government is moving to list Hindustan Urvarak and Rasayan Limited (HURL) in FY27, with a 10 to 11% stake sale expected to raise ₹5,000 to ₹6,000 crore. The offering forms part of the government's National Monetisation Pipeline and would be one of the larger fertiliser sector listings by a state-backed entity in recent memory.

Hindustan Urvarak and Rasayan Limited is a joint venture between NTPC, Indian Oil Corporation and Coal India, each holding 29.67%, giving the three a combined promoter stake of around 89%. Fertilizer Corporation of India Limited and Hindustan Fertilizer Corporation Limited hold the remaining 11%.

What The Company Does

The joint venture was set up in 2016 to revive shuttered fertiliser plants and build domestic urea capacity. It now runs manufacturing units at Gorakhpur in Uttar Pradesh, Barauni in Bihar and Sindri in Jharkhand.

Each unit produces 2,200 metric tonnes per day of ammonia and 3,850 metric tonnes per day of urea, adding up to 1.27 million metric tonnes per annum of neem-coated urea. The company supplies fertilisers across 17 states.

Why Now

Disruption in the Strait of Hormuz has put a spotlight on India's dependence on imported urea and fertilisers from West Asia. Domestic production capacity has become more strategically important, and a listed Hindustan Urvarak and Rasayan Limited with better access to capital would be in a stronger position to expand output when supply security is a genuine policy concern.

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Hydropower Also In The Frame

The government is not stopping at fertilisers. Two hydropower companies under NTPC, THDC India Limited and North Eastern Electric Power Corporation Limited, are also being lined up for listing.

THDC India Limited operates the Tehri, Koteshwar and Vishnugad Pipalkoti projects in Uttarakhand along with other assets, with a total operational capacity of 4.35 GW. NTPC holds 74.49% and the Uttar Pradesh government owns around 25.5%.

North Eastern Electric Power Corporation Limited, incorporated in 1976, runs six hydroelectric projects, three thermal plants and one solar station with 2.05 GW of combined installed capacity. NTPC acquired the Centre's stake in both companies in March 2020 for around ₹11,500 crore. Both listings need Department of Investment and Public Asset Management approval.

The Centre launched the second phase of the National Monetisation Pipeline in February 2026, targeting ₹16.73 trillion in asset monetisation by 2030, with the power sector expected to contribute around ₹2.76 trillion.

Sources:

Financial Express

Money Control